Magnetic-strip based credit, debit and calling cards are now in virtually everyone's pocket and it would be difficult indeed to imagine day-to-day life without them. Their very technological simplicity, however, is a double-edged sword, bringing convenience to consumer financial transactions on one hand while, on the other, they are directly responsible for creating ever-increasing occurrences of fraud. In the telecommunications sector, pre-paid cards for use in public call boxes have reduced theft by removing the use of cash to operate the call boxes. Additionally, new mobile telecommunications systems, such as the Global System for Mobile Communications ("GSM") and Personal Communications Network ("PCN"), are calling for more "intelligence" and security to be embedded in the network.
New mobile telecommunications services are leading to an ever-expanding use of SIMs and so-called smartcards whose functionality is embedded on a silicon chip rather than on a magnetic strip of a card. SIMs generally have a memory chip that contain data such as the identity of the cardholder (i.e. service subscriber), billing information and home location. Smartcards are more complex variants of SIMs and can contain microprocessors that execute complex algorithms for transaction management, data encryption and user authentication. In combination, a SIM may be included within a smartcard to identify the user of the telecommunications system. A SIM or smartcard can also be employed in a mobile telecommunications environment for the purpose of billing the call to the user's home account (regardless of the state lines or service providers).
The potential applications for SIMs and smartcards, however, extend far beyond mobile telecommunications. Applications for SIMs and smartcards include: electronic money, where a user can add value to the card at an automatic teller machine ("ATM"), healthcare, wherein the card can be used to store information regarding the user's allergies, prescriptions, and medical history, and public transportation, where value can be added to the card and then deducted as the passenger passes by an automatic reader on a bus or train. A user may also store personal information on the card such as addresses and telephone numbers.
As with all forms of card-based technology, however, counterfeiting and fraud are key issues. One measure to protect against fraud, introduced by banks for ATM cards and telecommunications companies for calling cards, is the personal identity number ("PIN"). The security of the PINs depends on keeping the PIN separate from the card. However, experience has demonstrated that many users do not adequately secure the PIN from the respective card (e.g., bank, credit or telephone card) thereby resulting in significant opportunities for counterfeiting and fraud. Moreover, electronic means may be used to bypass protections afforded by PINs.
While GSM mobile telecommunications systems provide some protections against fraud vis-a-vis analog systems, it may be possible for sophisticated thieves to duplicate SIMs and smartcards. Unlike cards that are inserted into an ATM, however, stolen or counterfeited SIMs and smartcards cannot be confiscated when used with a mobile telephone or wireless device.
Accordingly, what is needed in the art is a system and method for use in a telecommunications network that can remotely disable SIMs and smartcards, thereby discouraging theft and counterfeiting.